What happens when people try to withdraw money from money market funds: Money market funds will sell your shares out of your money market account to raise the cash. Remember, in almost all money market funds one share = $1. To raise that money the fund usually draws from the cash that they have on hand that day. This cash comes from the vast array of short term securities (usually 90 day or less commercial paper) that a fund has maturing on any given day.
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By Jon Markman